We manage investment accounts for individuals, businesses, and trusts.
Several aspects of our investing approach set us apart from the great majority of the financial industry. Most importantly, we believe that valuations are a crucial input to the investing process, and we stay patiently focused at all times on long-term outcomes. Our process also emphasizes cost efficiency and making sure that investors’ portfolios remain in line with their goals and risk-taking psychology.
To learn more, read about the importance of these factors below, view a brief slide show on our investing approach, and check out our blog.
Our investment approach draws on well-established principals of value investing: that markets are frequently — and sometimes significantly — mispriced, and that investors are well served to ignore the crowd and to remain patiently focused on valuations. We place our clients in a diversified basket of investments that are reasonably valued or undervalued, actively adjusting the type and amount of exposure based on valuations, and always staying focused on long-term outcomes.
We believe a diversified, value-based approach gives investors the best chance at good long-term returns, while also significantly reducing the risk of the portfolio disasters that often result from investing in highly overpriced markets.
Patient and disciplined
The ability to remain focused on the long term is a crucially important component of successful investing. Unfortunately, it is rare in the financial industry, and for that matter among investors in general. It’s well known that investors on the whole are very focused on the recent past, tending strongly to “chase returns” — to buy what’s recently done well, and sell what hasn’t. This tendency is amplified in the financial industry, where money managers are judged (and often compensated) on shorter-term performance, rendering long-term focus a serious business risk. The end result is an industry very much preoccupied with the short term and prone to chasing returns without regard to value or long-term prospects.
Fortunately, we are an independent firm with the willingness, ability, and discipline to focus on the long term. It makes our jobs harder at times, but we do it because we believe it’s in the best interest of our clients.
Cost- and tax-efficient
We make it a priority to keep our investing process cost-effective. In addition to favoring low-cost investments, we use sophisticated portfolio management software that allows us to minimize transaction fees and to organize household assets in a tax-optimized manner.
We are careful to invest each client’s portfolio in line with their investment goals, liquidity needs, and psychological risk profile. Our risk analysis process helps us get a good read on each client’s risk tolerance and ensure that portfolios remain invested accordingly.